Derivative Securities Are Also Called Contingent Claims Because

question 20

Multiple Choice

Derivative securities are also called contingent claims because

• A) their owners may choose whether or not to exercise them.
• B) a large contingent of investors holds them.
• C) the writers may choose whether or not to exercise them.
• D) their payoffs depend on the prices of other assets.
• E) contingency management is used in adding them to portfolios.

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